Homebuyers will pay thousands of dollars to stay cool

by Steve Randall06 Jul 2018

Homebuyers are willing to pay thousands of dollars more for the comfort of central air conditioning.

Zillow’s research found that staying cool is worth an average 2.5% to homebuyers amounting to a $5,500 premium for the median priced US home.

Those in San Antonio and Cincinnati are willing to pay the highest premium – 5.8% and 5.7% respectively – while those in Detroit, Indianapolis, and Las Vegas will pay 5% extra.

"Individual design preferences or decorating styles might deter buyers from certain homes, but there is a strong consensus in favor of air conditioning, although in the nation's fastest-moving markets, AC may weigh relatively low for buyers eager to find any home they can,” said Zillow Senior Economist Aaron Terrazas. “In historically more temperate climates, some homes – especially older ones – aren't as likely to have air conditioning. But in places where temperatures regularly reach triple digits, it's hard to find a home without air conditioning."

Previous Zillow research found that renters will pay an average of 2.8% more for a home with air conditioning, but the higher figure than for homebuyers may be because renters do not generally have the ability to add air conditioning at a later date.

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